USD/MXN rises back above 19.00 after a brief pullback


  • Mexican Peso remains under pressure versus the US Dollar
  • USD/MXN tests levels above 19.00, up 2.5% from Wednesday’s low.

The USD/MXN is trading slightly above 19.00, looking at the weekly high it hit earlier on Thursday at 19.05. The pair resume the upside after a brief pullback to 18.89. On Wednesday, it traded as low as 18.56, the lowest since February 2020.

The Mexican Peso has been unable to benefit from the rebound in commodity prices. At the same time, the US Dollar remains firm supported by economic data and higher US yields.

New data, the old debate and a new member for Banxico

Economic data released on Thursday in the US came in above expectations (Initial Jobless Claims and Philly Fed) and helped market sentiment. Still, Wall Street's indexes are in red. Emerging market currencies remain under pressure, extending the correction from multi-day highs. The rebound in commodity prices on Thursday is being offset by higher US yields.

The US hit the debt limit and the Treasury started to implement special measures to avoid a default. The debate on raising the debt ceiling at Congress is set to be complex as Republicans hold the House and Democrats the Senate.

In Mexico, Congress voted to confirm Omar Mejía, the government’s nominee for the Bank of Mexico for an eight-year period. Relatively unknown to market participants prior to his nomination, Mejía’s first vote at the board will be at the next meeting February 9. He backed the current interest rate hike cycle and promised transparency and independence.

USD/MXN technical outlook

The USD/MXN is staging a solid rebound. Technical indicators are turning to the upside in the daily chart. Price still remains below the 20-day Simple Moving Average that awaits at 19.17. If the pair manages to break and hold above 19.00/05, the next strong barrier emerges at 19.30.

A slide back to 18.80 would be seen as a normal correction to the recent rally. If it drops below, the Mexican Peso would recover some strength.

USD/MXN daily chart

USDMXN

USD/MXN

Overview
Today last price 18.977
Today Daily Change 0.0836
Today Daily Change % 0.44
Today daily open 18.8934
 
Trends
Daily SMA20 19.2002
Daily SMA50 19.3902
Daily SMA100 19.6763
Daily SMA200 19.9209
 
Levels
Previous Daily High 18.8994
Previous Daily Low 18.5663
Previous Weekly High 19.1951
Previous Weekly Low 18.7331
Previous Monthly High 19.9181
Previous Monthly Low 19.1084
Daily Fibonacci 38.2% 18.7722
Daily Fibonacci 61.8% 18.6935
Daily Pivot Point S1 18.6733
Daily Pivot Point S2 18.4532
Daily Pivot Point S3 18.3402
Daily Pivot Point R1 19.0065
Daily Pivot Point R2 19.1195
Daily Pivot Point R3 19.3396

 

 

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